American automotive company General Motors (GM) has announced plans to lay off over 1,000 employees from its software and service divisions worldwide.
In a statement released on August 19, GM emphasized the need to “simplify for speed and excellence, make bold choices, and prioritize investments with the greatest impact” as the company moves forward. Reports CNBC.
According to Reuters, the company clarified that the job cuts were not driven by cost-cutting but rather the outcome of an operational review.
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Scale Of Job Cuts
Approximately 600 positions will be cut at GM’s innovation center in Warren, Michigan, which houses a technology campus with more than 21,000 employees. GM noted that about half of the job reductions will affect positions in the United States.
As per CNBC, the automobile industry fears a downturn. As a result, it has prompted manufacturers to cut costs and, in many cases, reduce their workforce. Concurrently, they are also investing billions of dollars in emerging sectors like software-defined vehicles and all-electric cars.
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As for automakers like GM, Monetization of software has emerged as key priority. Currently, their focus is on generating revenue through subscription models and other recurring income sources.
